Regulatory Intelligence
Can a well licence be cancelled if the rig skids or the surface location changes?
Category:
Well Licensing
Research Basis
Archive Period
2015-2025
Records Reviewed
71
Primary Topics
D056; well licence; surface location change; skid rig; conductor casing; 150 m; amendment
Current Reference
AER Directive 056; AER Manual 012; Oil and Gas Conservation Rules
Common Question
Can a well licence be cancelled if the rig skids or the surface location changes?
Archive Findings
AER advised that the answer depends on whether the well is considered to exist. The correspondence listed practical triggers: 150 m depth, hydrocarbons encountered, or casing set, including conductor casing.
If any trigger applies, the existing licence may need to be retained rather than cancelled and replaced.
Engineering Insight
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Before advising cancellation or a new licence, confirm exactly what happened at surface and downhole. A skid or surface-location change after work starts may need an amendment path.
Current Guidance
Use Directive 056 and Manual 012 for well licence amendment or cancellation procedures. Check OGCR requirements for work on wells.